Kazakh Energy Ministry proposes new mechanism for financing modernization of power plants (Part 2)Kazakhstan’s Ministry of Energy proposes a new mechanism to finance investment projects in the energy sector, the press service of ministry said in a Monday press release.“As it has turned out, the [electricity producing] companies will not conclude investment agreements since they cannot attract financing from second-tier banks. In order to resolve this situation, the Ministry of Energy suggests that there should be a possibility of raising funds to finance investment projects for heat and power plants during the implementation of such projects,” the press release says.The main criteria for such investment agreements will be the requirement to lower the wear-and-tear rate by 10-15%, reduce balance-of-plant needs, ensure that the specific fuel equivalent consumption corresponds to the design specifications, and introduce best technologies available, according to the press release.The updated Tariff in Exchange for Investment Program is now being implemented. Also, ceiling tariffs on electricity generation were raised from June 1 of this year for 27 of the 47 power producing companies, leading to an increase in their tariffs by about 24% on average, the Energy Ministry said.This program is expected to bring additional 180 billion tenge to the energy sector for modernization and overhaul of the power plants, according to the ministry.In addition, the Energy Ministry initiated amendments to the existing legislation aimed to introduce administrative fines for failure to comply with modernization schedules.Tariff in Exchange for Investment Program, designed for 2023-2029, is expected to raise 3 trillion tenge for the modernization of 62,000 km of utility networks and reduce the wear and tear of utility equipment by 20%. (ICE ALMATY)

Fonte notizia: INTERFAX